How to Create 6-Digit Code in RetailGraph Software

How to Create 6-Digit HSN Code in RetailGraph

Important Steps about How to Create 6-Digit HSN Code in RetailGraph

As soon as the changing business comes into existence, we are seeing a huge change in the way products are being transacted around the world. To reduce errors when filing GST returns, business persons, taxpayers, accountants now require a general understanding of the goods being traded. For this, the government and the businessman adopt many types of procedures.

One of these is the introduction of HSN (Harmonized System of Nomenclature) codes.

What is the HSN code?

HSN was conceived and developed by the World Customs Organization (WCO) with the vision of classifying goods from all over the World systematically and logically.  It contains a six-digit uniform code that classifies more than 5,000 products and is accepted worldwide. The purpose behind this code is to identify the rate of tax applicable to a product in a country. 

The other benefit is-

  1. You can determine the quantum of product exported or imported in and out of a country. 
  2. You will be able to analyze the movement of goods across the World.
  3. The identification of goods becomes easy.
  4. The possibilities of misinterpretation tend to reduce.

HSN in India

India is a member of the World Customs Organization (WCO) since 1971 and it has already been using the HSN since 1986.  It was originally using 6-digit HSN codes to classify commodities for Customs and Central Excise. 

HSN Code Structure

There are about 21 groups in the structure of the HSN code, and these groups are further classified into 99 chapters. The chapters are then divided into headings which are approximately 1244 in number. The titles are subsequently divided into 5224 subdivisions. In the code, it plays the following way:

  1. Each chapter is designated as a two-digit HSN number.
  2. Each two-digit HSN number is sub-classified into a four-digit HSN code.
  3. Later, such four-digit HSN codes are further sub-classified into six-digit HSN codes.

Later, another amendment is made by Customs and Central Excise. They added two more digits to make the code more accurate, resulting in an 8-digit classification.

What is HSN code under GST?

The HSN system is not new for India as it has already been using since 1986 in the Central Excise and Customs regime. Now, India has its very own Goods & Services Tax (GST). The GST applies to all goods and services as indirect taxes and reduces the burden on the end consumer. It is now structured with HSN. The GST HSN is a much more detailed classification. Under GST, the Indian manufacturers shall be required to follow a 3-tiered structure of HSN.

In this blog, we will learn how to create a 6-digit HSN code in RetailGraph.

Setting Up of HSN Code to 6 Digit Code in RetailGraph

  1. After successful login to the RetailGraph software, click  START go to  Options ->  System Default .

  1. The  Password Verification window will open.  Enter Password  and click on the  Submit  button.

  1. The  System Default  window will open. Go to the  Others  tab. 

  1. Write  6 in the  HSN Width in Report  text box, under the  Upload  section, and click on the  Save  button.

  1. The  Password Verification window will appear.  Enter Password  and click on the  Submit  button.

  1. Changes are saved and the  System Default  window will disappear.

  1. Now, go to the  START -> Masters -> Inventory -> HSN .

  1. The HSN window will open. Click  New  in the  Home  tab.

  1. Again a small HSN window opens.

  1. Fill your respective data in the fields (HSN, Description, Remarks, Tax, Unit, Exempted, and Quantity in Loose). For example:
  1. HSN :   300410
  2. Description : Goods
  3. Remarks : 4444
  4. Tax : GST05
  5. Unit : OTHERS
  6. And, click on the  Save  button.

  1. Close the HSN window.

Now, if you want to attach the HSN 6 Digit Code with the product, you need to follow the following steps.

  1. Go to the  START -> Masters -> Inventory -> Product .

  1. Select Product “ AAM ACHAR SMAL ” from the Product list. And, click on the “ Form View ” tab.

  1. Select  HSN (SAC) from the list.

  1. Click on the  Save  button.

  1. Close the current window.

How to View 6-Digit HSN Code in Sales Invoice

  1. Now open the “ Sales Invoice ” window through the  Sales Invoice  icon.

  1. Right-click on the Product row, select “ Set Grid Layout ”.

  1. The “Set Grid Layout” window opens. In this window, search HSN, HSN data will come out. 

  1. Checked the ‘ Visible’  and ‘ Locked’  check-boxes. And click on the  Save  button.

  1. Grid Column Properties Has Been Saved ’ message box opens. Click ‘ OK’ .

  1. Now, in the Sales Invoice window, choose product ‘ AAM ACHAR SMAL ‘and click on the  SAVE  button.

How to Export HSN 6 Digit Code in GSTR1

  1. Click  Start -> GST -> GST Forms (For Offline Tool) -> Export GSTR1 (Excel) .

  1. An Export GSTR1 (Excel) window opens. Choose the Date Range (From Date, To Date) and click  OK .

  1. Save As window opens. Type the file name and click on the  Save  button.

  1. A Test file opens, where you get information about the created HSN code.

Auto Update HSN code through CSV File

  1. Click  START -> Options -> Export/Import Data

  1. The  Export/Import Data window opens. 

  1. Select  Import Transaction .

  1. In the  Import Transaction page, select  CSV (AWACS) under the Format section.

  1. Select ’ Purchase Invoice ’ and  ‘Vendor’ from the  Transaction  drop-down, and click  OK .

  1. A system window opens where you can choose  V3 - Copy CSV file, and click  Open  to auto-update HSN.

  1. The  Import Transaction window opens, click  OK .

  1. The  Link ID’s window opens.

  1. Select the  Product  and Click  OK .

Update HSN in Product from CSV

(Without updation of purchase entry )

  1. Click  START -> Options -> Export/Import Data

  1. The  Export/Import Data window opens. Select  Update HSN in Product from CSV .

  1. The  Update HSN dialog box opens. Browse the file from the  Select File option and click on the  Import  button.

  1. The  Link ID’s window opens.

  1. Select the  Product  and Click  OK .

For detailed visualization, kindly watch our video tutorial  (LINK OF THE VIDEO) . If you want more details, please contact to our team.

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